Skip to main content

FTC files lawsuit against Amazon about in-app purchases made by children

A week ago, Amazon got itself into a spat with the Federal Trade Commission (FTC) regarding the e-commerce giant’s policies regarding in-app purchases. According to leaked documents, Amazon is even prepared to go to court. It looks like its preparedness will come in handy because the FTC has filed a lawsuit against Amazon regarding those policies.

According to the suit, Amazon allowed children to make in-app purchases without any parental consent. In addition, the FTC alleges that when Amazon began allowing in-app purchases in November 2011, there were no measures in place, such as password requirements, in order to prevent children from enlarging their parents’ credit card bills. Amazon made password entry a requirement for in-app purchases above $20 in March 2012.

Recommended Videos

“Amazon’s in-app system allowed children to incur unlimited charges on their parents’ accounts without permission,” said FTC chairwoman Edith Ramirez in a press release. “Even Amazon’s own employees recognized the serious problem its process created.”

FTC made note of one instance, where a child spent $350 on virtual items before her mom caught on. According to the FTC, in-app purchases made through Amazon are “final and non-refundable,” with the company keeping 30 percent of transactions.

The lawsuit seeks a court order that would require Amazon to issue refunds to parents whose kids accidentally made in-app purchases, as well as ban billing parents and other account holders for in-app purchases made without consent. Amazon, on the other hand, refutes the FTC’s allegations.

“We have continuously improved our experience since launch, but even at launch, when customers told us their kids had made purchases they didn’t want we refunded those purchases,” wrote Amazon associate general counsel Andrew DeVore when Amazon first caught wind of the FTC’s desire to turn the issue into a lawsuit earlier this month.

This isn’t the first time a company has come under fire for in-app purchases. Apple found itself in a similar situation at the start of the year, with the Cupertino-based company eventually agreeing to refund customers to the tune of $32.5 million. Google also made several changes to the Play Store in order to make it harder for children to make in-app purchases without permission.

Williams Pelegrin
Former Digital Trends Contributor
Williams is an avid New York Yankees fan, speaks Spanish, resides in Colorado, and has an affinity for Frosted Flakes. Send…
Latest iPhone Fold leak adds weight to previously rumored design feature
Concept render of a foldable iPhone.

There are plenty of rumors surrounding Apple's next iPhone models, with the iPhone 17 and iPhone 17 Pro models expected to be revealed later this year, likely in September. A super slim iPhone – dubbed the iPhone 17 Air in most rumors – has also been heavily speculated to arrive this year, competing with the recent Samsung Galaxy S25 Edge, but next year could see an even more exciting iPhone launch. 

It's long been rumored that 2026 could be the year Apple finally joins the folding phone market, with its offering going up against devices like the Samsung Galaxy Z Fold 6, or what will likely be the Galaxy Z Fold 7 by the time Apple's model arrives. There have already been a number of reports suggesting what the iPhone Fold might feature, but the latest talks about the screen ratios of both the main and cover displays, as well as the front camera design. 

Read more
Nothing 2 owners treated to new features in free update
A person holding the Nothing Phone 2.

If you’re a Nothing Phone 2 user, the company has some news for you. In its latest X post, the company announced the latest update for its current flagship. And yes, the new goodies are significant.

The May OS update for your Phone 2 is designed to invigorate your daily interactions and ensure a consistently fresh and fluid experience. This update also introduces several key features and enhancements to bolster privacy, simplify media access, and refine overall system performance.

Read more
The foldable iPhone could become a yearly staple for Apple
Semi-open state of a foldable iPhone concept

South Korean tech site ET News has released a report suggesting the foldable iPhone will get an annual refresh starting in 2026. It would replace the Pro Max as the top-of-the-line iPhone model and get updated every year just like the rest of the core lineup.

The launch date for the "iPhone Fold" is still up in the air -- so while ET News is betting on 2026, we don't know if that will turn out to be accurate or not. Either way, the hype around this rumored new model is continuing to build with every new leak we get.

Read more